We apply negative screening at a firm level, which applies within all fixed income portfolios.
Group wide exclusionary screens include cluster munition and landmine manufacturers and as of 2019, companies that produce cigarettes and tobacco products. We also exclude sanctioned and very high risk countries, companies domiciled in those countries and individuals.
For sanctioned and high risk countries we enforce country level restrictions based on the constituents of the Australian Department of Foreign Affairs and Trade (DFAT) Sanctioned Countries List and similar lists issued by Governments in other jurisdictions where our funds are domiciled. No investment is possible in companies domiciled in any country on the DFAT list without clearance from Investment Compliance personnel as the system controls do not allow it.
In addition our controls include screens for any potential investment from a country deemed to be 'very high risk' in relation to politically exposed persons, sanctions and ultimate beneficial ownership controls. The constituents on each system are regularly reviewed and updated.
Please also see the following link for our policy on cluster munitions and anti-personnel mines:
Please see the following link for our policy on Tobacco Exclusion: